The Liberal-National Government of Western Australia has announced a major stimulus package to boost the housing construction industry and reduce pressure on the state’s social housing sector. Treasurer and Housing Minister Troy Buswell and Regional Development Minister Brendon Grylls said $316million would be brought forward from future budgets to fund construction of more than 1,000 new dwellings in Perth and regional Western Australia. Of this, $116million would be spent on social housing and $200million from Royalties for Regions funding to boost the Government Regional Officers Housing (GROH) program.

“This immediate and targeted spending on new housing will help address the sharp decline in building activity and deliver much needed social housing in a more timely way. It will provide for 600 new dwellings available for rental by Homeswest applicants and more than 400 in regional areas under GROH. “Despite significant increases in the first home owner grant and substantial interest rate reductions, residential construction is at its lowest level since 2001. " Mr Buswell said. “The building industry is one of the Western Australia's biggest employers and this cash injection will help the industry ride out the current economic downturn. “It will also help the State Government get good value for money by taking advantage of reduced building costs in the current economic climate.” The Treasurer said it was important to emphasise this was not new money but funds from future budget provisions brought forward because it was needed now to help support the economy in extremely difficult times. Mr Grylls said that the Royalties for Regions program had allowed the Government to increase its investment in regional housing. “By reconfiguring the Housing our Workforce component of Royalties for Regions, we can fund more than 450 new houses across regional WA in the next year. “This will help sustain regional economies and provide much better housing to encourage government employees to live and work in the regional Western Australia. The State Government is also looking at more innovative housing solutions such as new generation prefabricated dwellings and lifestyle villages as a way of delivering more housing with current funding." he said.

Mr Buswell said bringing forward funding would have no net impact on state debt over the published forward estimates. “By spending this money now rather than in three to four years, we can provide an immediate economic stimulus for Western Australia, as well as delivering a range of social benefits,” the WA Treasurer said.